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3.0 Update of emissions factors

The emission factor details issued last year have been updated to include 2007 NZRC data. While this is a minor update as 10-year averages are used, it is important for premium petrol and diesel as in these cases the average energy contents used are only since the specification change at the end of 2005.

In general 2007 showed consistent properties with 2006 data. There is a small change to the diesel factor from a change to the average energy content but other changes are insignificant. These factors would now be set for the 2009-2012 period unless there was significant change as detailed in the Emissions Trading Bulletin No. 2, February 2008.

The other change to the emissions factors is to include the oxidation factor for the CO2 emissions in the calculation of the factor. This means it can be taken out of the calculation in sections 8 and 10 of the Regulations and avoids the problem of it being factored into the CH4 and N2O emissions factors when it should not be.

BP has suggested that the factor be expressed in tonnes CO2/ KL rather than tonnes CO2/ litre. This seems logical so the change can be made if agreed. In addition in the Regulations (Schedule 2) the units should be shown

The form still shows five fuel oil grades but this will be reduced to two or three depending what is agreed from item 2.1 (b). The new factors are in Appendix 2.

Recommendation:

  • For TAG group to accept the factors as calculated for use in the ETS

  • To adjust the units used for the factor to tonnes CO 2 / KL

  • Include the units in Schedule 2 of the Regulations

  • To reduce the fuel oil emissions factors to two/three in line with the proposed fuel oil split

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